What is money supply?

a. the total amount of money invested into infrastructure

b. the amount of money borrowed from a foreign country

c. the total amount of money circulating through the economy

d. the amount of money earned through exports

e. the amount of money an entrepreneur spends on manufacturing a good

The correct answer is C. Money supply is the total amount of money circulating through the economy.

Explanation:

The money supply or monetary mass, in macroeconomics, is the amount of money available in an economy to buy goods, services and savings certificates, at a given time. The money supply is determined jointly by the private banking system and the central bank of the country.

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